ISLAMABAD
Gold prices in the local market jumped on Friday due to rupee’s depreciation and surge in prices in global markets, with the price of one tola of 24-karat gold rising to Rs214,500.
According to the All-Pakistan Sarafa Gems and Jewellers Association (APSGJA), the price of one tola of 24-karat gold increased by Rs6,500 to Rs214,500 from Rs208,000. Similarly, the gold rate for 10 grams of 24-karat increased to Rs183,900 from Rs178,325 , showing an increase of Rs5,575. Overall, the price of one tola of 24-karat gold increased by Rs10,500 in two days in the country.
However, as of 1340 hours GMT, gold futures in the international market were available at $1,956.70 per ounce, showing a decrease of $3.30 (-0.17 percent).
Out of the $3.30 per ounce decrease, -$2.35 was due to strengthening of the US dollar and -$0.95 was due to predominant sellers, according to Kitco Gold Index.
Following Thursday’s choppy action, gold prices held steady at around $1,960 on Friday. The benchmark 10-year US Treasury bond yield moved sideways below 3.8 percent, failing to provide a directional clue to gold price ahead of US consumer confidence data.
Gold price has been demonstrating a non-directional performance from Thursday after a stalwart rally to near $1,960 per ounce. The precious metal has failed to capitalize on the US soft inflation and Producer Price Index (PPI) June report, which cleared that households’ demand has turned subdued and the path towards the 2 percent inflation target is intact.
In spite of a heavy decline in the US Dollar Index, gold price is struggling to come out of the woods. The US Dollar Index has surrendered the psychological cushion of 100 and has dropped to near 99.65. Rising hopes of only one interest rate hike announcement from the Federal Reserve by the year-end have sent the USD Index extremely lower.
